Most Shareholders Will Probably Find That The CEO Compensation For Lantronix, Inc. (NASDAQ:LTRX) Is Reasonable
Under the guidance of CEO Paul Pickle, Lantronix, Inc. (NASDAQ:LTRX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 08 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Lantronix
How Does Total Compensation For Paul Pickle Compare With Other Companies In The Industry?
Our data indicates that Lantronix, Inc. has a market capitalization of US$176m, and total annual CEO compensation was reported as US$1.2m for the year to June 2022. That's a notable increase of 9.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$400k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.0m. From this we gather that Paul Pickle is paid around the median for CEOs in the industry. Furthermore, Paul Pickle directly owns US$3.1m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$400k | US$400k | 34% |
Other | US$772k | US$675k | 66% |
Total Compensation | US$1.2m | US$1.1m | 100% |
Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. Lantronix is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Lantronix, Inc.'s Growth
Over the last three years, Lantronix, Inc. has shrunk its earnings per share by 4.1% per year. In the last year, its revenue is up 81%.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Lantronix, Inc. Been A Good Investment?
We think that the total shareholder return of 59%, over three years, would leave most Lantronix, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Lantronix that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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